Now if there was ever a terribly misleading metaphor for how life works, it's got to be the notion that there's a "glide path to retirement." As if the whole process is on automatic or something. As if it just kind of happens. Set it and forget it. Yep, that low-maintenance approach would be kind of nice if it were true—except that successfully getting to retirement with a fat nest egg in tow requires myriad smart financial moves and plenty of preparation way before the Big Moment finally arrives. And if you don't actively manage your retirement, no one else will. So get in the saddle, and get started now.
Organizing your finances and keeping your skills current will help you decide to retire when it's best for you, not when your company or body says so. And even if you suddenly become single, advance planning will keep money woes from ruining your golden years. Buying target-date mutual funds can be a profitable part of any long-term portfolio, but a wave of new offerings makes doing your homework more important than ever. Of course, when the stock market is going up, investing or even giving money away is easy. But when stocks are stuck in a rut as they have been for nearly a decade, preserving capital is key to any sound financial plan. And hey, even though our national pension system may face big funding woes in the future, knowing the best way to take Social Security can make a huge difference in the senior years of aging boomers or even gen X-ers starting to sprout a few gray hairs.
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